Due to the catastrophe of Hurricane Harvey, the IRS announced that 401(k)s and other similar employer-sponsored plans may make hardship distributions and loans to those adversely affected by this natural disaster and their families.
The specific language of the IRS announcement states that qualified employer plans may make loans or “a hardship distribution for a need arising from Hurricane Harvey, to an employee or former employee whose principal residence on August 23, 2017, was located in one of the Texas counties identified for individual assistance by the Federal Emergency Management Agency (“FEMA”) because of the devastation caused by Hurricane Harvey or whose place of employment was located in one of these counties on that applicable date or whose lineal ascendant or descendant, dependent, or spouse had a principal residence or place of employment in one of these counties on that date.”
To find out which counties or areas have been identified by FEMA as eligible for relief, please visit their website for the most current information: https://www.fema.gov/disasters.
Source: IRS Announcement 2017-11
